Scotland business

Scottish property market 'reaches turning point'

House sale sign Image copyright PA

Properties in Scotland are typically selling for £8,000 more than their asking price, according to a new report.

Website S1 Homes found that there was no longer a "reality gap" in most areas of Scotland.

The reality gap is the difference between what sellers hope to sell their properties for and the price they actually achieve.

S1 said the latest figures marked "a turning point" in the property market.

S1's latest quarterly house price report found flats were typically selling for £27,000 more than their asking price. Terraced houses on average went for £20,000 more and semi-detached houses for £9,000 more.

For a second quarter in a row, only detached houses were selling for less than their asking price.

However, the report suggested the reality gap had narrowed, with detached houses selling for £31,000 less than their asking price compared with £37,000 in the previous quarter.

Regional analysis indicated that a gap still exists in some parts of Scotland, although it has narrowed everywhere except in Argyll and Bute and South Lanarkshire.

In the previous quarter, properties in East Lothian, Glasgow/Dunbartonshire and North Lanarkshire were generally selling for less than their asking price.

However, the latest quarter suggested properties in Glasgow/Dunbartonshire and North Lanarkshire were on average selling for £2,500 more than their asking price, while properties in East Lothian were typically going for £500 more.

'Turning point'

S1 Homes managing director Ewan Stark said: "We have reached a turning point in the Scottish property market.

"Buyers are now prepared to pay more than they have been for quite some time and sellers at the lower end of the market are seeing their asking prices being surpassed more notably.

"It's still a buyer's market when looking for a detached property but the gap is narrowing so we could see a very different picture in 2015."

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